House File 224 - Introduced HOUSE FILE BY JOCHUM Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing an Iowa clean elections Act, providing for 2 funding of the Act, and providing penalties and an effective 3 date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1646HH 81 6 jr/gg/14 PAG LIN 1 1 Section 1. NEW SECTION. 68A.401A ELECTRONIC FILING. 1 2 Reports filed with the board pursuant to the requirements 1 3 of section 68A.401 shall be filed in an electronic format if a 1 4 candidate or committee accepts contributions in excess of 1 5 twenty thousand dollars in the aggregate, makes expenditures 1 6 in excess of twenty thousand dollars in the aggregate, or 1 7 incurs indebtedness in excess of twenty thousand dollars in 1 8 the aggregate. The board shall establish a system to verify 1 9 the identity of the person filing the report. 1 10 Sec. 2. NEW SECTION. 68A.401B MEDIA REPORTS. 1 11 1. a. Publishers of print and electronic media shall 1 12 record all purchases of print media space and electronic media 1 13 time or space related to advertisements that expressly 1 14 advocate the election or defeat of a clearly identified 1 15 candidate or the passage or defeat of a clearly identified 1 16 ballot issue. 1 17 b. Publishers shall file monthly reports of activity 1 18 covered by this section with the board, due at the board or 1 19 postmarked by the fifth day of each month following any month 1 20 in which media space or time has been purchased related to 1 21 advertisements that expressly advocate the election or defeat 1 22 of a clearly identified candidate or the passage or defeat of 1 23 a ballot issue. 1 24 c. The reports shall contain a detailed listing of at 1 25 least the following information: 1 26 (1) Identification of the persons buying the media space 1 27 or time. 1 28 (2) Identification of the candidate or ballot issue that 1 29 is clearly identified in the advertisement. 1 30 (3) Description of the position advocated by the persons 1 31 buying the media space or time with regard to the clearly 1 32 identified candidate or ballot issue. 1 33 (4) The dates on which the purchase took place, and the 1 34 dates for which the media space or time was purchased. 1 35 (5) The cost of the media space or time. 2 1 2. The filing requirements of this section shall apply in 2 2 addition to any other applicable filing requirements under 2 3 this chapter. 2 4 3. The board shall develop, prescribe, furnish, and 2 5 distribute forms for the media reports. 2 6 Sec. 3. Section 68A.403, subsection 1, Code 2005, is 2 7 amended to read as follows: 2 8 1.AUnless filed in an electronic format according to 2 9 section 68A.401 a report or statement required to be filed 2 10 under this chapter shall be signed by the person filing the 2 11 report. 2 12 Sec. 4. NEW SECTION. 68A.801 DEFINITIONS. 2 13 For the purposes of this subchapter: 2 14 1. "Allowable contribution" means a qualifying 2 15 contribution or a seed money contribution. 2 16 2. "Board" means the Iowa ethics and campaign disclosure 2 17 board established under section 68B.32. 2 18 3. "Clean money qualifying period" means the period during 2 19 which candidates are permitted to collect qualifying 2 20 contributions in order to qualify for clean money campaign 2 21 funding. The period begins ninety days before the beginning 2 22 of the primary election campaign period and ends thirty days 2 23 before the beginning of the primary election campaign period. 2 24 4. "Coordination" means a payment made for a communication 2 25 or anything of value that is for the purpose of influencing 2 26 the outcome of an election and that is made by a person 2 27 according to at least one of the following: 2 28 a. In cooperation, consultation, or concert with, at the 2 29 request or suggestion of, or pursuant to, a particular 2 30 understanding with a candidate, a candidate's committee, or an 2 31 agent acting on behalf of a candidate or candidate's 2 32 committee. 2 33 b. For the dissemination, distribution, or republication, 2 34 in whole or in part, of any broadcast or any written, graphic, 2 35 or other form of campaign material prepared by a candidate, a 3 1 candidate's committee, or an agent of a candidate or 3 2 candidate's committee. 3 3 c. Based on specific information about the candidate's 3 4 plans, projects, or needs provided to the person making the 3 5 payment by the candidate or the candidate's agent who provides 3 6 the information with a view toward having the payment made. 3 7 d. If, in the same election cycle in which the payment is 3 8 made, the person making the payment is serving or has served 3 9 as a member, employee, fundraiser, or agent of the candidate 3 10 or candidate's committee in an executive or policymaking 3 11 position. 3 12 e. If the person making the payment has served in any 3 13 formal policy or advisory position with the candidate's 3 14 campaign or has participated in strategic or policymaking 3 15 discussions with the candidate's campaign relating to the 3 16 candidate's pursuit of nomination for election, or election, 3 17 to office, in the same election cycle as the election cycle in 3 18 which the payment is made. 3 19 f. If the person making the payment retains the 3 20 professional services of an individual or person who, in a 3 21 nonministerial capacity, has provided or is providing 3 22 campaign=related services in the same election cycle to a 3 23 candidate who is pursuing the same nomination or election as 3 24 any of the candidates to whom the communication refers. For 3 25 purposes of this section, "professional services" includes 3 26 services in support of a candidate's pursuit of nomination for 3 27 election or election to office such as polling, media advice, 3 28 direct mail, fundraising, or campaign research services. 3 29 5. "Excess expenditure amount" means the amount of money 3 30 spent or obligated to be spent by a nonparticipating candidate 3 31 in excess of the clean money amount available to a 3 32 participating candidate running for the same office. 3 33 6. "Express advocacy" means the same as defined in section 3 34 68A.102. 3 35 7. "General election campaign period" means the period 4 1 beginning the day after the primary election and ending on the 4 2 day of the general election. 4 3 8. "Independent candidate" means a candidate who does not 4 4 represent a political party that has been granted ballot 4 5 status and that holds a primary election to choose its nominee 4 6 for the general election. 4 7 9. "Independent expenditure" means an expenditure made by 4 8 a person or group of persons other than a candidate or 4 9 candidate's committee that meets both of the following 4 10 conditions: 4 11 a. The expenditure is made for a communication that 4 12 contains express advocacy. 4 13 b. The expenditure is made without the participation or 4 14 cooperation of and without coordination with a candidate or a 4 15 candidate's committee. 4 16 10. "Issue advertisement" means a communication through a 4 17 broadcasting station, newspaper, magazine, outdoor advertising 4 18 facility, mailing, or any other type of general public 4 19 political advertising that has all of the following 4 20 characteristics: 4 21 a. The purchase does not constitute an independent 4 22 expenditure or a contribution. 4 23 b. The cost, in the aggregate, is at least five hundred 4 24 dollars. 4 25 c. The communication contains the name or likeness of one 4 26 or more candidates. 4 27 d. The communication was made during a primary or general 4 28 election period. 4 29 e. The communication recommends a position on a political 4 30 issue. 4 31 11. "Nonparticipating candidate" means a candidate who is 4 32 on the ballot but has chosen not to apply for clean money 4 33 campaign funding, or a candidate who is on the ballot and has 4 34 applied for but has not satisfied the requirements for 4 35 receiving clean money campaign funding. 5 1 12. "Participating candidate" means a candidate who 5 2 qualifies for clean money campaign funding. Such candidates 5 3 are eligible to receive clean money campaign funding during 5 4 primary or general election campaign periods. 5 5 13. "Party candidate" means a candidate who represents a 5 6 political party as defined by section 43.2. 5 7 14. "Primary election campaign period" means the period 5 8 beginning ninety days before the primary election and ending 5 9 on the day of the primary election. 5 10 15. "Qualifying contribution" means a contribution of five 5 11 dollars that is received during the designated clean money 5 12 qualifying period by a candidate seeking to become eligible 5 13 for clean money campaign funding and that is acknowledged by a 5 14 written receipt identifying the contributor. 5 15 16. "Seed money contribution" means a contribution of no 5 16 more than one hundred dollars made by an individual adult 5 17 during the seed money period, but specifically excludes all of 5 18 the following: 5 19 a. Payments by a membership organization for the costs of 5 20 communications to its members. 5 21 b. Payments by a membership organization for the purpose 5 22 of facilitating the making of qualifying contributions. 5 23 c. The cash value of volunteer activity, including the 5 24 payment of incidental expenses of volunteers. 5 25 17. "Seed money period" means the period beginning the day 5 26 following the previous general election for that office and 5 27 ending on the last day of the clean money qualifying period. 5 28 This is the exploratory period during which candidates who 5 29 wish to become eligible for clean money campaign funding for 5 30 the next elections are permitted to raise and spend a limited 5 31 amount of private seed money, from contributions of up to one 5 32 hundred dollars per individual, for the purpose of determining 5 33 whether to become a candidate and fulfilling the clean money 5 34 eligibility requirements. 5 35 Sec. 5. NEW SECTION. 68A.802 ELIGIBILITY FOR PARTY 6 1 CANDIDATES. 6 2 1. A party candidate qualifies as a participating 6 3 candidate for the primary election campaign period if the 6 4 candidate does both of the following: 6 5 a. The candidate files a declaration with the board that 6 6 the candidate has complied and will comply with all of the 6 7 requirements of this subchapter, including the requirement 6 8 that during the seed money period and the clean money 6 9 qualifying period the candidate not accept or spend private 6 10 contributions from any source other than seed money 6 11 contributions and clean money qualifying contributions, unless 6 12 the provisions of section 68A.804 apply. 6 13 b. The candidate meets both of the following qualifying 6 14 contribution requirements before the close of the clean money 6 15 qualifying period: 6 16 (1) A party candidate must collect both qualifying 6 17 contributions and signatures as follows: 6 18 (a) For the office of governor, from five hundred 6 19 registered voters in each congressional district. 6 20 (b) For statewide office other than governor, from two 6 21 hundred fifty registered voters in each congressional 6 22 district. 6 23 (c) For the Iowa senate, from two hundred registered 6 24 voters in the senate candidate's electoral district. 6 25 (d) For the Iowa house of representatives, from one 6 26 hundred registered voters in the house candidate's electoral 6 27 district. 6 28 (2) Each qualifying contribution must meet all 6 29 requirements of this section. 6 30 2. Contributors shall be registered voters who reside 6 31 within the candidate's electoral district and who are 6 32 therefore eligible to vote for that candidate. 6 33 3. Qualifying contributions shall be: 6 34 a. Made in cash, check, money order, or credit or debit 6 35 card. 7 1 b. Gathered by the candidate personally or by volunteers 7 2 who do not receive compensation. 7 3 c. Acknowledged by a receipt to the contributor, with a 7 4 copy to be kept by the candidate and a third copy to be 7 5 submitted to the board. The receipt shall indicate, by the 7 6 contributor's signature, that the contributor understands that 7 7 the purpose of the contribution is to help the candidate 7 8 qualify for clean money campaign funding, and shall include a 7 9 signed statement indicating that the contribution is made 7 10 without coercion or reimbursement. The receipt shall include 7 11 the contributor's signature, printed name, home address, and 7 12 telephone number, and the name of the candidate on whose 7 13 behalf the contribution is made. 7 14 d. Turned over to the board for deposit in the clean money 7 15 campaign fund established under section 68A.823, with the 7 16 signed and completed receipt, according to a schedule and 7 17 procedure to be determined by the board. A contribution 7 18 submitted as a qualifying contribution that does not include 7 19 the signed and completed receipt shall not be counted as a 7 20 qualifying contribution. 7 21 4. A party candidate qualifies as a participating 7 22 candidate for the general election campaign period when the 7 23 candidate does both of the following: 7 24 a. The candidate has met all of the applicable 7 25 requirements and filed a declaration with the board that the 7 26 candidate has fulfilled and will fulfill all of the 7 27 requirements of a participating candidate as stated in this 7 28 subchapter. 7 29 b. As a participating candidate during the primary 7 30 election campaign period, the candidate had the highest number 7 31 of votes of the candidates contesting the primary election 7 32 from the candidate's respective party and won the party's 7 33 nomination. 7 34 Sec. 6. NEW SECTION. 68A.803 ELIGIBILITY FOR INDEPENDENT 7 35 CANDIDATES. 8 1 1. An independent candidate qualifies as a participating 8 2 candidate for the primary election campaign period if the 8 3 candidates does both of the following: 8 4 a. The candidate files a declaration with the board that 8 5 the candidate has complied and will comply with all of the 8 6 requirements of this subchapter, including the requirement 8 7 that during the seed money period and the clean money 8 8 qualifying period the candidate not accept or spend private 8 9 contributions from any source other than seed money 8 10 contributions and clean money qualifying contributions, unless 8 11 the provisions of section 68A.804 apply. 8 12 b. The candidate meets the following qualifying 8 13 contribution requirements before the close of the clean money 8 14 qualifying period: 8 15 (1) An independent candidate shall collect the same number 8 16 of qualifying contributions as required of a party candidate 8 17 for the same office under section 68A.802. 8 18 (2) Each qualifying contribution must meet all 8 19 requirements of this section. 8 20 2. Contributors shall be registered voters who reside 8 21 within the candidate's electoral district and who are 8 22 therefore eligible to vote for that candidate. 8 23 3. Qualifying contributions shall be: 8 24 a. Made in cash, check, money order, or credit or debit 8 25 card. 8 26 b. Gathered by the candidate personally or by volunteers 8 27 who do not receive compensation. 8 28 c. Acknowledged by a receipt to the contributor, with a 8 29 copy to be kept by the candidate and a third copy to be 8 30 submitted to the board. The receipt shall indicate, by the 8 31 contributor's signature, that the contributor understands that 8 32 the purpose of the contribution is to help the candidate 8 33 qualify for clean money campaign funding, and shall include a 8 34 signed statement indicating that the contribution is made 8 35 without coercion or reimbursement. The receipt shall include 9 1 the contributor's signature, printed name, home address, and 9 2 telephone number, and the name of the candidate on whose 9 3 behalf the contribution is made. 9 4 d. Turned over to the board for deposit in the clean money 9 5 campaign fund established under section 68A.823, with the 9 6 signed and completed receipt, according to a schedule and 9 7 procedure to be determined by the board. A contribution 9 8 submitted as a qualifying contribution that does not include 9 9 the signed and completed receipt shall not be counted as a 9 10 qualifying contribution. 9 11 4. An independent candidate qualifies as a participating 9 12 candidate for the general election campaign period when the 9 13 candidate does both of the following: 9 14 a. If, prior to the primary election, the candidate has 9 15 met all of the applicable requirements of this subchapter and 9 16 filed a declaration with the board that the candidate has 9 17 fulfilled and will fulfill all of the requirements of a 9 18 participating candidate as stated in this subchapter. 9 19 b. If, during the primary election campaign period, the 9 20 candidate has fulfilled all the requirements of a 9 21 participating candidate as stated in this subchapter. 9 22 Sec. 7. NEW SECTION. 68A.804 TRANSITION RULE FOR CURRENT 9 23 ELECTION CYCLE. 9 24 During the election cycle in effect on the date of 9 25 enactment of this subchapter, a candidate may be certified as 9 26 a participating candidate, notwithstanding the acceptance of 9 27 contributions or making of expenditures from private funds 9 28 before the date of enactment that would, absent this section, 9 29 disqualify the candidate as a participating candidate, 9 30 provided that any private funds accepted but not expended 9 31 before the date of enactment of this subchapter shall either 9 32 be returned to the contributor or submitted to the board for 9 33 deposit in the clean money campaign fund established under 9 34 section 68A.823. 9 35 Sec. 8. NEW SECTION. 68A.805 CONTINUING OBLIGATION TO 10 1 COMPLY. 10 2 A participating candidate who accepts any benefits under 10 3 section 68A.813 during the primary election campaign period 10 4 shall comply with all the requirements of this subchapter 10 5 through any remaining time during the primary election 10 6 campaign period as well as through the general election 10 7 campaign period whether or not the candidate continues to 10 8 accept benefits. 10 9 Sec. 9. NEW SECTION. 68A.806 CONTRIBUTIONS AND 10 10 EXPENDITURES. 10 11 1. During the primary and general election campaign 10 12 periods, a participating candidate who has voluntarily agreed 10 13 to participate in clean money campaign financing shall not 10 14 accept private contributions from any source other than the 10 15 candidate's political party as specified in section 68A.808. 10 16 2. A person shall not make a contribution in violation of 10 17 section 68A.502. A participating candidate who receives a 10 18 qualifying contribution or a seed money contribution that is 10 19 not from the person listed on the receipt as required by this 10 20 subchapter shall pay to the board for deposit in the clean 10 21 money campaign fund established under section 68A.823 the 10 22 entire amount of such contribution. 10 23 3. The board shall issue each participating candidate a 10 24 card known as the "clean money campaign debit card", and a 10 25 line of debit entitling the candidate to draw clean money 10 26 campaign funds to pay for all campaign costs and expenses up 10 27 to the amount of funding the candidate has received. A 10 28 participating candidate shall not pay campaign costs by cash, 10 29 check, money order, loan, or by any other financial means 10 30 other than debit card. During the primary and general 10 31 election campaign periods, a participating candidate shall pay 10 32 by means of the board's clean money campaign debit card. 10 33 4. Eligible candidates shall furnish complete campaign 10 34 records, including all records of seed money contributions and 10 35 qualifying contributions, to the board at regular filing 11 1 times, or on request by the board. Candidates shall cooperate 11 2 with any audit or examination conducted or ordered by the 11 3 board. 11 4 Sec. 10. NEW SECTION. 68A.807 NONPARTICIPATING 11 5 CANDIDATES == CONTRIBUTION LIMITS. 11 6 Nonparticipating candidates shall be subject to the 11 7 following contribution limits: 11 8 1. Candidates for statewide office: 11 9 a. One thousand dollars in the aggregate per individual 11 10 contribution. 11 11 b. Five thousand dollars in the aggregate per political 11 12 committee contribution. 11 13 2. Candidates for the Iowa senate and house of 11 14 representatives: 11 15 a. Five hundred dollars in the aggregate per individual 11 16 contribution. 11 17 b. One thousand dollars in the aggregate per political 11 18 committee contribution. 11 19 Sec. 11. NEW SECTION. 68A.808 POLITICAL PARTY 11 20 CONTRIBUTIONS AND EXPENDITURES. 11 21 1. Participating candidates may accept monetary or in=kind 11 22 contributions from political parties provided that the 11 23 aggregate amount of such contributions from all political 11 24 party committees combined does not exceed the equivalent of 11 25 five percent of the clean money financing amount for that 11 26 office. 11 27 2. In=kind contributions made during a general election 11 28 campaign period on behalf of a group of the party's candidates 11 29 shall not be considered a prohibited party contribution or 11 30 count against the five percent limit established in subsection 11 31 1 if such group includes at least fifty=one percent of the 11 32 candidates whose names will appear on the general election 11 33 ballot in the political subdivision represented by the party 11 34 committee making such in=kind contributions. 11 35 3. Contributions made to, and expenditures made by, 12 1 political parties during primary and general campaign periods 12 2 shall be reported to the board on the same basis as 12 3 contributions and expenditures made to or by candidates. 12 4 4. This section and this subchapter shall not prevent 12 5 political party funds from being used for any of the 12 6 following: 12 7 a. General operating expenses of the party. 12 8 b. Conventions. 12 9 c. Nominating and endorsing candidates. 12 10 d. Identifying, researching, and developing the party's 12 11 positions on issues. 12 12 e. Party platform activities. 12 13 f. Non=candidate=specific voter registration. 12 14 g. Non=candidate=specific get=out=the=vote drives. 12 15 h. Travel expenses for noncandidate party leaders and 12 16 staff. 12 17 i. Other non=candidate=specific party=building activities, 12 18 as defined by rule of the board. 12 19 Sec. 12. NEW SECTION. 68A.809 USE OF PERSONAL FUNDS. 12 20 1. Personal funds contributed as seed money by a candidate 12 21 seeking to become eligible as a participating candidate or by 12 22 the candidate's spouse shall not exceed one hundred dollars 12 23 per contributor. 12 24 2. Personal funds shall not be used to meet the qualifying 12 25 contribution requirement except for one five dollar 12 26 contribution from the candidate and one five dollar 12 27 contribution from the candidate's spouse. 12 28 Sec. 13. NEW SECTION. 68A.810 SEED MONEY. 12 29 1. The only private contributions a candidate seeking to 12 30 become eligible for clean money campaign funding shall accept, 12 31 other than qualifying contributions, are seed money 12 32 contributions contributed by individual adults prior to the 12 33 end of the clean money qualifying period. 12 34 2. A seed money contribution shall not exceed one hundred 12 35 dollars, and the aggregate amount of seed money contributions 13 1 accepted by a candidate seeking to become eligible for clean 13 2 money campaign funding shall not exceed the relevant limit, as 13 3 follows: 13 4 a. Twenty=five thousand dollars for a candidate team 13 5 running for governor and lieutenant governor. 13 6 b. Fifteen thousand dollars for a candidate running for 13 7 statewide office other than governor or lieutenant governor. 13 8 c. Two thousand dollars for a candidate running for the 13 9 Iowa senate. 13 10 d. One thousand dollars for a candidate running for the 13 11 Iowa house of representatives. 13 12 3. Receipts for seed money contributions shall include the 13 13 contributor's signature, printed name, street address and zip 13 14 code, telephone number, occupation, and name of employer. 13 15 Contributions shall not be accepted if the required disclosure 13 16 information is not received. 13 17 4. Seed money shall be spent only during the clean money 13 18 qualifying period. Seed money shall not be spent during the 13 19 primary or general election campaign periods. 13 20 5. Within forty=eight hours after the close of the clean 13 21 money qualifying period, candidates seeking to become eligible 13 22 for clean money campaign funding shall do both of the 13 23 following: 13 24 a. Fully disclose all seed money contributions and 13 25 expenditures to the board. 13 26 b. Turn over to the board for deposit in the clean money 13 27 campaign fund any seed money the candidate has raised during 13 28 the designated seed money period that exceeds the aggregate 13 29 seed money limit. 13 30 Sec. 14. NEW SECTION. 68A.811 PARTICIPATION IN DEBATES. 13 31 1. Participating candidates in contested races shall 13 32 participate in all of the following: 13 33 a. For the offices of governor and lieutenant governor: 13 34 (1) One one=hour debate during a contested primary 13 35 election. 14 1 (2) Two one=hour debates during a contested general 14 2 election. 14 3 b. For all other offices: 14 4 (1) One one=hour debate during a contested primary 14 5 election. 14 6 (2) One one=hour debate during a contested general 14 7 election. 14 8 2. Licensed broadcasters who receive any state funds 14 9 shall, as a condition to receiving those funds, be required to 14 10 publicly broadcast the debates held pursuant to this section 14 11 and section 68A.822. 14 12 3. Nonparticipating candidates for the same office whose 14 13 names will appear on the ballot shall be invited to join the 14 14 debates. 14 15 Sec. 15. NEW SECTION. 68A.812 CERTIFICATION. 14 16 1. No more than five days after a candidate applies for 14 17 clean money campaign funding benefits, the board shall certify 14 18 that the candidate is or is not eligible. 14 19 2. Eligibility can be revoked if the candidate violates 14 20 the requirements of this subchapter, in which case all clean 14 21 money campaign funds shall be repaid. 14 22 3. The candidate's request for certification shall be 14 23 signed by the candidate and the treasurer of the candidate's 14 24 committee under penalty of perjury. 14 25 4. The board's determination is final except that it is 14 26 subject to examination and audit by an outside agency 14 27 according to rule and to prompt judicial review according to 14 28 rule and chapter 17A. 14 29 Sec. 16. NEW SECTION. 68A.813 BENEFITS PROVIDED TO 14 30 CANDIDATES ELIGIBLE TO RECEIVE CLEAN MONEY CAMPAIGN FUNDING. 14 31 1. Candidates who qualify for clean money campaign funding 14 32 for primary and general elections shall receive all of the 14 33 following: 14 34 a. Clean money campaign funding from the board for each 14 35 election, the amount of which is specified in section 68A.815. 15 1 This funding may be used to finance any and all campaign 15 2 expenses during the particular campaign period for which it 15 3 was received. 15 4 b. Media benefits as provided for in section 68A.822. 15 5 c. Additional clean money campaign funding to match any 15 6 excess expenditure amount spent by a nonparticipating 15 7 candidate, as specified in section 68A.817. 15 8 d. Additional clean money campaign funding to match any 15 9 independent expenditure made in opposition to their 15 10 candidacies or on behalf of their opponents' candidacies, as 15 11 specified in section 68A.819. 15 12 e. Additional clean money funding to match any issue 15 13 advertisement expenditure, as specified in section 68A.820. 15 14 2. The maximum aggregate amount of additional funding a 15 15 participating candidate shall receive to match independent 15 16 expenditures and the excess expenditures of nonparticipating 15 17 candidates shall be two hundred percent of the full amount of 15 18 clean money campaign funding allocated to a participating 15 19 candidate for a particular primary or general election 15 20 campaign period. 15 21 Sec. 17. NEW SECTION. 68A.814 SCHEDULE OF CLEAN MONEY 15 22 CAMPAIGN FUNDING PAYMENTS. 15 23 1. An eligible candidate shall receive clean money 15 24 campaign funding for the primary election campaign period on 15 25 the date on which the board certifies the candidate as a 15 26 participating candidate. This certification shall take place 15 27 no later than five days after the candidate has submitted the 15 28 required number of qualifying contributions and a declaration 15 29 stating that the candidate has complied with all other 15 30 requirements for eligibility as a participating candidate, but 15 31 no earlier than the beginning of the primary election campaign 15 32 period. 15 33 2. An eligible candidate shall receive clean money 15 34 campaign funding for the general election campaign period 15 35 within forty=eight hours after certification of the primary 16 1 election results. 16 2 Sec. 18. NEW SECTION. 68A.815 DETERMINATION OF CLEAN 16 3 MONEY CAMPAIGN FUNDING AMOUNTS. 16 4 1. a. For party candidates, the amount of clean money 16 5 campaign funding for a contested primary election is as 16 6 follows: 16 7 (1) Seven hundred fifty thousand dollars for a candidate 16 8 team running for governor and lieutenant governor. 16 9 (2) Seventy=five thousand dollars for a candidate for 16 10 attorney general. 16 11 (3) Fifty thousand dollars for a candidate for statewide 16 12 office other than governor, lieutenant governor, or attorney 16 13 general. 16 14 (4) Twenty=two thousand five hundred dollars for a 16 15 candidate running for the Iowa senate. 16 16 (5) Fifteen thousand dollars for a candidate running for 16 17 the Iowa house of representatives. 16 18 b. The clean money campaign funding amount for an eligible 16 19 party candidate in an uncontested primary election is twenty= 16 20 five percent of the amount provided in a contested primary 16 21 election. 16 22 c. In a contested general election, if an eligible party 16 23 candidate or all of the candidates of the candidate's party 16 24 combined received at least twenty percent of the total number 16 25 of votes cast for all candidates seeking that office in the 16 26 just=held primary election or in the previous general 16 27 election, the candidate shall receive the full amount of clean 16 28 money campaign funding for the general election, as follows: 16 29 (1) Three million dollars for a candidate team running for 16 30 governor and lieutenant governor. 16 31 (2) Two hundred thousand dollars for a candidate for 16 32 attorney general. 16 33 (3) One hundred twenty=five thousand dollars for a 16 34 candidate for statewide office other than governor, lieutenant 16 35 governor, or attorney general. 17 1 (4) Forty thousand dollars for a candidate running for the 17 2 Iowa senate. 17 3 (5) Thirty thousand dollars for a candidate running for 17 4 the Iowa house of representative. 17 5 d. The clean money campaign funding amount for an eligible 17 6 party candidate in an uncontested general election is ten 17 7 percent of the amount provided in a contested general election 17 8 for the same office. 17 9 2. a. For eligible independent candidates, the clean 17 10 money campaign funding amount for a primary election is 17 11 twenty=five percent of the amount received by a party 17 12 candidate in a contested primary election. 17 13 b. The clean money campaign funding amount for an eligible 17 14 independent candidate in the general election is the same as 17 15 the full amount received by a party candidate in the general 17 16 election. 17 17 c. After the first cycle of clean money elections, the 17 18 board shall modify all clean money campaign funding amounts 17 19 based on the percentage increase in the consumer price index, 17 20 for all urban consumers, United States city average, as 17 21 published in the federal register by the United States 17 22 department of labor, bureau of labor statistics, that reflects 17 23 the percentage increase in the consumer price index for the 17 24 twelve=month period ending December 31 of the previous year. 17 25 Sec. 19. NEW SECTION. 68A.816 EXPENDITURES MADE WITH 17 26 CLEAN MONEY CAMPAIGN FUNDS. 17 27 1. The clean money campaign funding received by a 17 28 participating candidate shall be used only for the purpose of 17 29 defraying that candidate's campaign=related expenses during 17 30 the particular election campaign period for which the clean 17 31 money campaign funding was received. 17 32 2. Payments shall not be used for the following: 17 33 a. Payments that are in violation of the law. 17 34 b. Payments that repay any personal, family, or business 17 35 loans, expenditures, or debts. 18 1 Sec. 20. NEW SECTION. 68A.817 DISCLOSURE OF EXCESS 18 2 SPENDING BY NONPARTICIPATING CANDIDATES. 18 3 1. If a nonparticipating candidate's total expenditures 18 4 exceed the amount of clean money campaign funding allocated to 18 5 the candidate's clean money opponent, the candidate shall 18 6 declare to the board within forty=eight hours every excess 18 7 expenditure amount that, in the aggregate, is more than one 18 8 thousand dollars. 18 9 2. During the last twenty days before the end of the 18 10 relevant campaign period, a nonparticipating candidate shall 18 11 declare to the board each excess expenditure amount over five 18 12 hundred dollars within twenty=four hours of when the 18 13 expenditure is made or obligated to be made. 18 14 3. The board may make its own determination as to whether 18 15 excess expenditures have been made by nonparticipating 18 16 candidates. 18 17 4. Upon receiving an excess expenditure declaration, the 18 18 board shall immediately release additional clean money 18 19 campaign funding to the opposing participating candidate or 18 20 candidates equal to the excess expenditure amount the 18 21 nonparticipating candidate has spent or intends to spend, 18 22 subject to the limit set forth in section 68A.813. 18 23 Sec. 21. NEW SECTION. 68A.818 CAMPAIGN ADVERTISEMENTS. 18 24 All broadcast and print advertisements placed by candidates 18 25 or candidate's committees shall include a clear written or 18 26 spoken statement indicating that the candidate has approved of 18 27 the contents of the advertisement. 18 28 Sec. 22. NEW SECTION. 68A.819 DISCLOSURE OF, AND 18 29 ADDITIONAL CLEAN MONEY CAMPAIGN FUNDING TO RESPOND TO, 18 30 INDEPENDENT EXPENDITURES. 18 31 1. Any person or group of persons who makes or obligates 18 32 to make an independent expenditure during a primary or general 18 33 election campaign period which, in the aggregate, exceeds one 18 34 thousand dollars shall report each expenditure within forty= 18 35 eight hours to the board. 19 1 2. The report to the board shall include a statement, 19 2 under penalty of perjury, by the person or persons making the 19 3 independent expenditure identifying the candidate whom the 19 4 independent expenditure is intended to help elect or defeat 19 5 and affirming that the expenditure is totally independent and 19 6 involves no coordination with a candidate or a political 19 7 party. 19 8 a. An individual or organization may file a complaint with 19 9 the board if the candidate or the organization believes that 19 10 the statement according to this subsection is false. 19 11 b. A hearing on a complaint under this subsection shall be 19 12 held within three business days of filing and a decision 19 13 issued within seven days of filing. 19 14 3. Any person or group of persons who makes or obligates 19 15 to make an independent expenditure during the last twenty days 19 16 before the end of the relevant campaign period which, in the 19 17 aggregate, exceeds five hundred dollars shall report each 19 18 expenditure within twenty=four hours to the board. 19 19 4. Upon receiving a report that an independent expenditure 19 20 has been made or obligated to be made, the board shall 19 21 immediately release additional clean money funding, equal in 19 22 amount to the cost of the independent expenditure, to all 19 23 participating candidates whom the independent expenditure is 19 24 intended to oppose or defeat provided that the maximum 19 25 aggregate amount of additional funding a participating 19 26 candidate shall receive to match independent expenditures and 19 27 the excess expenditures of nonparticipating candidates is no 19 28 more than two hundred percent of the full amount of clean 19 29 money funding allocated to a participating candidate in that 19 30 election. 19 31 Sec. 23. NEW SECTION. 68A.820 DEFINITION AND DISCLOSURE 19 32 OF, AND ADDITIONAL CLEAN MONEY CAMPAIGN FUNDING TO RESPOND TO, 19 33 ISSUE ADVERTISEMENTS. 19 34 1. A person who makes or obligates to make a disbursement 19 35 to purchase an issue advertisement shall file a report with 20 1 the board not later than forty=eight hours after making or 20 2 obligating to make the disbursement, containing the following 20 3 information: 20 4 a. The amount of the disbursement. 20 5 b. The name and address of the person making the 20 6 disbursement. 20 7 c. The purpose of the issue advertisement. 20 8 2. Upon receiving a report that an issue advertisement has 20 9 been made or obligated to be made, and upon determination that 20 10 the advertisement can reasonably be interpreted as having the 20 11 effect of promoting the defeat of a participating candidate or 20 12 the election of that candidate's opponent, the board shall 20 13 immediately release to that candidate additional clean money 20 14 funding, equal in amount to the cost of the issue 20 15 advertisement. 20 16 Sec. 24. NEW SECTION. 68A.821 VOTER INFORMATION PROGRAM. 20 17 1. The board shall establish and administer a nonpartisan 20 18 voter information program, including an advisory council 20 19 consisting of representatives of nonprofit organizations, 20 20 political parties, the media, and interested citizens. 20 21 2. The voter information program advisory council may 20 22 establish a voter information program for the purpose of 20 23 providing voters with election=related information and 20 24 fostering political dialogue and debate. 20 25 3. The voter information program advisory council shall 20 26 organize the publication and distribution of a voter 20 27 information guide that includes important information about 20 28 the following issues: 20 29 a. Candidates appearing on the ballot, including 20 30 biographical material submitted by the candidates. 20 31 b. Whether candidates are funding their campaigns with 20 32 public money or private money. 20 33 c. Policy statements by the candidates or their political 20 34 parties on issues designated by the council and other issues. 20 35 d. Candidates' voting records. 21 1 Sec. 25. NEW SECTION. 68A.822 BROADCAST DEBATES. 21 2 1. All public television and radio broadcast stations 21 3 funded in whole or in part by the state shall make available 21 4 free coverage for candidate debates in contested primary and 21 5 general elections. The minimum amount of time that 21 6 broadcasters shall broadcast, and participating candidates 21 7 shall participate in, shall be as follows: 21 8 a. For the office of governor and lieutenant governor: 21 9 (1) One one=hour debate during a contested primary 21 10 election. 21 11 (2) Two one=hour debates during a contested general 21 12 election. 21 13 b. For all other offices: 21 14 (1) One one=hour debate during a contested primary 21 15 election. 21 16 (2) One one=hour debate during a contested general 21 17 election. 21 18 2. All participating candidates shall participate in the 21 19 debates and all nonparticipating candidates for the same 21 20 office whose names will appear on the ballot must be invited 21 21 to join the debates. 21 22 Sec. 26. NEW SECTION. 68A.823 CLEAN MONEY CAMPAIGN FUND 21 23 == NATURE AND PURPOSES. 21 24 1. A special clean money campaign fund is established as a 21 25 separate fund within the state treasury, under the control of 21 26 the board, for the following purposes: 21 27 a. Providing public financing for the election campaigns 21 28 of certified participating candidates during primary election 21 29 and general election and runoff campaign periods. 21 30 b. Paying for the administrative and enforcement costs of 21 31 the board in relation to this subchapter. 21 32 2. The fund shall consist of moneys received according to 21 33 section 68A.824. Notwithstanding section 8.33, unencumbered 21 34 or unobligated moneys and any interest earned on moneys in the 21 35 fund on June 30 of any fiscal year shall not revert to the 22 1 general fund of the state but shall remain in the fund and be 22 2 available for expenditure in subsequent years. 22 3 Sec. 27. NEW SECTION. 68A.824 FUNDING. 22 4 1. In addition to any moneys appropriated by the general 22 5 assembly to the clean money campaign fund established in 22 6 section 68A.823, the following moneys shall be deposited in 22 7 the fund: 22 8 a. The qualifying contributions required of candidates 22 9 seeking to become certified as participating candidates 22 10 according to section 68A.802 or 68A.803 and candidates' excess 22 11 qualifying contributions. 22 12 b. The excess seed money contributions of candidates 22 13 seeking to become certified as participating candidates. 22 14 c. Moneys distributed to any participating candidate who 22 15 does not remain a candidate until the primary or general 22 16 election for which they were distributed. 22 17 d. Civil penalties levied by the board against candidates 22 18 for violations of this subchapter. 22 19 e. Voluntary donations made directly to the clean money 22 20 campaign fund. 22 21 f. Any other sources of revenue designated by the general 22 22 assembly. 22 23 2. The general assembly shall appropriate additional funds 22 24 as necessary to fully fund clean money campaign payments 22 25 required under this subchapter. 22 26 Sec. 28. NEW SECTION. 68A.825 POWERS AND PROCEDURES. 22 27 The board shall have the following powers and procedures, 22 28 in addition to those granted in this chapter and chapter 68B, 22 29 when administering this subchapter: 22 30 1. After every primary and general election, the board may 22 31 conduct random audits and investigations to ensure compliance 22 32 with this subchapter. 22 33 2. The subjects of audits and investigations shall be 22 34 selected on the basis of impartial criteria established by a 22 35 vote of at least four members of the board. 23 1 3. The board may investigate anonymous complaints. 23 2 4. The identity of a complainant may be kept confidential 23 3 if the complainant states in the complaint that revealing the 23 4 identity of the complainant could reasonably result in 23 5 disciplinary action or loss of employment. 23 6 5. The board may seek injunctions when all of the 23 7 following conditions are met: 23 8 a. There is a substantial likelihood that a violation of 23 9 this subchapter is occurring or is about to occur. 23 10 b. The failure to act expeditiously will result in 23 11 irreparable harm to a party affected by the violation or 23 12 potential violation. 23 13 c. Expeditious action will not cause undue harm or 23 14 prejudice to the interests of others. 23 15 d. The public interest would be best served by the 23 16 issuance of an injunction. 23 17 6. The board may levy civil penalties for violations of 23 18 this subchapter. Civil penalties shall be deposited in the 23 19 clean money campaign fund. 23 20 7. The board shall refer criminal violations to the county 23 21 attorney or attorney general for prosecution. 23 22 8. The board may participate fully in any actions filed 23 23 under this section. 23 24 9. The board shall adopt rules pursuant to chapter 17A as 23 25 necessary to administer this subchapter. 23 26 Sec. 29. NEW SECTION. 68A.826 CIVIL ACTIONS. 23 27 1. A citizen who believes a candidate has violated this 23 28 subchapter may pursue a civil action in a court of relevant 23 29 jurisdiction, provided that both of the following are true: 23 30 a. The citizen has previously filed a complaint regarding 23 31 the same alleged violation with the board. 23 32 b. The board has failed to make a determination within 23 33 thirty days of the filing of the complaint. 23 34 2. A complainant that prevails in a civil action charging 23 35 a violation of this subchapter shall be entitled to receive 24 1 reasonable attorney fees and court costs from the defendant. 24 2 3. If a court in which a civil action has been filed under 24 3 subsection 1 finds that the complaint in that action was made 24 4 frivolously or without cause, the court may require the 24 5 complainant to pay the costs of the board, the court, and the 24 6 defendant parties. 24 7 Sec. 30. NEW SECTION. 68A.827 BOARD REPORTS. 24 8 1. The board shall report to the general assembly after 24 9 each election cycle. 24 10 2. The report shall include a detailed summary of all seed 24 11 money contributions, qualifying contributions, and campaign 24 12 funding benefits received, and expenditures made, by all 24 13 participating candidates. The report shall also include a 24 14 summary and evaluation of the board's activities and 24 15 recommendations relating to the implementation, 24 16 administration, and enforcement of this subchapter. 24 17 Sec. 31. NEW SECTION. 68A.828 REPAYMENTS OF EXCESS 24 18 EXPENDITURES. 24 19 1. If a participating candidate spends or obligates to 24 20 spend more than the clean money funding the candidate 24 21 receives, and if such is determined not to be an amount that 24 22 had or could have been expected to have a significant impact 24 23 on the outcome of the election, the candidate shall repay to 24 24 the clean money campaign fund an amount equal to the excess. 24 25 2. If a participating candidate spends or obligates to 24 26 spend more than the clean money campaign funding the candidate 24 27 receives, and if such is determined to be an amount that had 24 28 or could have been expected to have a significant impact on 24 29 the outcome of the election, the candidate shall repay to the 24 30 clean money campaign fund an amount equal to five times the 24 31 value of the excess. 24 32 Sec. 32. NEW SECTION. 68A.829 PENALTIES. 24 33 1. A candidate shall not knowingly accept more benefits 24 34 than those to which the candidate is entitled, spend more than 24 35 the amount of clean money campaign funding received, or misuse 25 1 such campaign funding benefits or clean money campaign 25 2 funding. 25 3 2. If a violation of subsection 1 was intentional and 25 4 involved an amount that had or could have been expected to 25 5 have a significant impact on the outcome of the election, the 25 6 candidate commits an aggravated misdemeanor. 25 7 3. If it is determined that the violation of subsection 1 25 8 was intentional and involved an amount that had or could have 25 9 been expected to have a significant impact on the outcome of 25 10 the election, and if, in the judgment of the board, the 25 11 violation is believed to have contributed to the violator 25 12 winning the election, the board may recommend to the 25 13 appropriate authority that proceedings be commenced to remove 25 14 the violator from office or to impeach the violator if 25 15 applicable. 25 16 4. A person shall not provide false information to the 25 17 board or conceal or withhold information from the board. A 25 18 violation of this subsection is an aggravated misdemeanor. 25 19 Sec. 33. SEVERABILITY. The provisions of this Act are 25 20 severable as provided in section 4.12. 25 21 Sec. 34. EFFECTIVE DATE. This Act takes effect November 25 22 5, 2008. 25 23 Sec. 35. IMPLEMENTATION OF ACT. Section 25B.2, subsection 25 24 3, shall not apply to this Act. 25 25 EXPLANATION 25 26 This bill amends Code chapter 68A, relating to campaign 25 27 finance law, to add a new subchapter relating to public 25 28 financing for certain political campaigns. 25 29 The bill enacts a "clean money" model for public financing, 25 30 and enacts new Code section 68A.801, providing definitions for 25 31 key terms related to a clean money model. 25 32 New Code section 68A.823 establishes a separate, 25 33 nonreverting fund in the state treasury for the clean money 25 34 campaign fund, and new Code section 68A.824 provides sources 25 35 of revenue for the fund. 26 1 New Code sections 68A.802 and 68A.803 specify eligibility 26 2 procedures for both party and independent candidates, 26 3 specifying the number and details for collection of qualifying 26 4 contributions. 26 5 New Code section 68A.806 prohibits a participating 26 6 candidate from accepting private funding during the primary 26 7 and general election campaign periods other than certain 26 8 permitted party funding. Contributions in the name of another 26 9 person are prohibited and subject to payment to the board as 26 10 are any applicable penalties. The use of personal funds for 26 11 seed money or as qualifying contributions is limited by new 26 12 Code section 68A.809. 26 13 New Code section 68A.808 limits political party 26 14 contributions and expenditures on behalf of candidates. 26 15 New Code section 68A.810 details the collection of private 26 16 contributions for use as seed money, limited to $100 per 26 17 individual contributor, and also limited in the aggregate in 26 18 differing amounts for candidates for governor and lieutenant 26 19 governor, for other statewide candidates, for Iowa senate 26 20 candidates, and for Iowa house of representatives candidates. 26 21 Seed money expenditures are limited to the clean money 26 22 qualifying period and seed money contributions and 26 23 expenditures must be fully disclosed at the end of the clean 26 24 money qualifying period. 26 25 New Code section 68A.812 provides for a certification 26 26 process after a candidate applies for clean money campaign 26 27 funding benefits and requires repayment of funds if 26 28 eligibility is revoked. The bill provides for audit and 26 29 judicial review of the certification decision. 26 30 New Code section 68A.814 provides for a schedule of 26 31 payments to participating candidates, and new Code section 26 32 68A.815 specifies differing total amounts for primary and 26 33 general elections for candidates for governor and lieutenant 26 34 governor, for other statewide candidates, for Iowa senate 26 35 candidates, and for Iowa house of representatives candidates. 27 1 Alternate amounts are provided for uncontested races. Clean 27 2 money campaign funding payments must be used only for 27 3 campaign=related expenses, and cannot be used for payments in 27 4 violation of law or to repay personal or business loans, 27 5 expenditures, or debts, pursuant to new Code section 68A.816. 27 6 Nonparticipating candidates must disclose within 48 hours 27 7 every expenditure in excess of the clean money funding 27 8 allocated to the candidate's participating opponent, that in 27 9 the aggregate is more than $1,000, pursuant to new Code 27 10 section 68A.817. Contributions to nonparticipating candidates 27 11 are limited in Code section 68A.807. Certain other reporting 27 12 requirements apply during the last 20 days of a campaign. 27 13 New Code section 68A.813 provides certain benefits for 27 14 participating candidates, including specified amounts of 27 15 public funding pursuant to new Code section 68A.815, mandatory 27 16 participation in debates on public television pursuant to new 27 17 Code sections 68A.811 and 68A.822, and additional limited 27 18 public funding to respond to certain excess expenditures by 27 19 nonparticipating candidates, independent expenditures, and 27 20 issue advertisement expenditures pursuant to Code sections 27 21 68A.817, 68A.819, and 68A.820. Any candidate who accepts 27 22 benefits during the primary campaign must continue to comply 27 23 with the requirements of the public financing program, even if 27 24 the candidate stops accepting benefits of the program at any 27 25 point during the primary or general election according to new 27 26 Code section 68A.805. 27 27 All candidates must include a statement with all 27 28 advertisements indicating that the candidate has approved of 27 29 the contents of the advertisement pursuant to new Code section 27 30 68A.818. 27 31 Public television and radio stations receiving any state 27 32 funds must offer certain free coverage for candidate debates 27 33 pursuant to new Code section 68A.822. 27 34 Persons making certain independent expenditures must report 27 35 such expenditures to the board, along with an affidavit 28 1 affirming that the expenditure has not been coordinated with 28 2 the candidate or party, pursuant to new Code section 68A.818. 28 3 Alleged violations of the coordination affirmation are subject 28 4 to an expedited hearing procedure. 28 5 Persons making certain issue advertisements must also 28 6 report to the board pursuant to new Code section 68A.820. 28 7 New Code section 68A.821 provides that the board shall 28 8 administer a voter information program, including an advisory 28 9 council, to provide voters with election=related information, 28 10 including a voter guide with candidate biographical material, 28 11 policy statements, voting records, and whether the candidate 28 12 funds the campaign with public or private money. 28 13 New Code section 68A.825 provides the board with certain 28 14 specific enforcement powers in relation to the new subchapter, 28 15 and new Code section 68A.827 provides for an election cycle 28 16 report to the general assembly on the public funding program. 28 17 New Code section 68A.826 creates a civil right of action 28 18 for citizens alleging that a candidate has violated the law. 28 19 Violations of the public funding program are subject to 28 20 aggravated misdemeanor penalties, pursuant to new Code section 28 21 68A.829. New Code section 68A.828 provides for repayment of 28 22 certain excess expenditures. 28 23 The bill provides for an effective date of November 5, 28 24 2008, which is the day after election day 2008, to allow the 28 25 new system to commence with a new campaign cycle. New Code 28 26 section 68A.804 also provides guidelines for dealing with 28 27 money collected by candidates prior to the effective date of 28 28 the public financing program. 28 29 New Code section 68A.401A requires electronic filing by any 28 30 candidate or committee that reaches a $20,000 threshold, and 28 31 publishers of print and electronic media must file reports of 28 32 media buys pursuant to new Code section 68A.401B. 28 33 The bill may include a state mandate as defined in Code 28 34 section 25B.3. The bill makes inapplicable Code section 28 35 25B.2, subsection 3, which would relieve a political 29 1 subdivision from complying with a state mandate if funding for 29 2 the cost of the state mandate is not provided or specified. 29 3 Therefore, political subdivisions are required to comply with 29 4 any state mandate included in the bill. 29 5 LSB 1646HH 81 29 6 jr:rj/gg/14